India’s invisible innovation

  • The crux of the talk was that Innovation is an iceberg and what we see as consumers ie product innovation is just the tip of the iceberg. India may not be well represented in the tip, but in the submerged/invisible part of it, we’re well represented
  • Traditionally, the grunt back office jobs were outsourced, but outsourcing is a sinking ladder, whereby, when the person doing your grunt work is mature and ready to take more responsibility, you will either bring him to the developed world ie immigration, OR move the next step of the operation to India, which happens more often…

law of diminishing returns

the decrease in themarginal (incremental) output of a production process as the amount of a singlefactor of production is incrementally increased, while the amounts of all other factors of production stay constant.

The law of diminishing returns states that in all productive processes, adding more of one factor of production, while holding all others constant (“ceteris paribus“), will at some point yield lower incremental per-unit returns.[5] The law of diminishing returns does not imply that adding more of a factor will decrease the totalproduction, a condition known as negative returns, though in fact this is common.

A common sort of example is adding more workers to a job, such as assembling a car on a factory floor. At some point, adding more workers causes problems such as workers getting in each other’s way or frequently finding themselves waiting for access to a part. In all of these processes, producing one more unit of output per unit of time will eventually cost increasingly more, due to inputs being used less and less effectively.[6]

The law of diminishing returns is a fundamental principle of economics.[5] It plays a central role in production theory.[7]

opportunity cost and the 2 ways to spend money

the loss of other alternatives when one alternative is chosen.
Eg. when you choose to play super mario for 6 hrs, you have chosen that over say working for 6 hrs and getting paid, say $60. This can be looked at as you having chosen to give $60 to the game
So if you run with this idea for a min, you can argue that there are essentially 2 ways to spend money, one by actually spending hard cash, and other by spending your time, which is “potential cash”.
When you earn cash and then spend it, you are actually creating value in the economy by acting as producer first (to earn money) and consumer next.
But when you play super mario, you don’t affect the economy in any way…